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It is a member of the United Nations, SAARC, BIMSTEC and the Non-Aligned Movement.
The Royal Bhutan Army maintains a close relationship with the Indian Armed Forces.
However, in every case, these seem to have been describing not modern Bhutan but the Kingdom of Tibet.
The modern distinction between the two did not begin until well into the Scottish explorer George Bogle's 1774 expedition — realizing the differences between the two regions, cultures and states, his final report to the East India Company formally proposed labelling the Druk Desi's kingdom as "Boutan" and the Panchen Lama's as "Tibet".
Situated on the ancient Silk Road between Tibet, the Indian subcontinent and Southeast Asia, the Bhutanese state developed a distinct national identity based on Buddhism.
Headed by a spiritual leader known as the Zhabdrung Rinpoche, the territory was composed of many fiefdoms and governed as a Buddhist theocracy.
Bhutan may have been influenced by the Yuan dynasty with which it shares various cultural and religious similarities.
After the decline of the Yuan dynasty in the 14th century, these subsects vied with each other for supremacy in the political and religious landscape, eventually leading to the ascendancy of the Drukpa Lineage by the 16th century. Throne covers were placed atop the temple cushions used by high lamas.
In South Asia, Bhutan ranks first in economic freedom, ease of doing business, and peace; and is the least corrupt country in the region as of 2016 The government is a parliamentary democracy; the head of state is the King of Bhutan, known as the "Dragon King." Bhutan maintains diplomatic relations with 52 countries and the European Union, but does not have formal ties with the five permanent members of the United Nations Security Council.
To defend the country against intermittent Tibetan forays, Namgyal built a network of impregnable dzongs or fortresses, and promulgated the Tsa Yig, a code of law that helped to bring local lords under centralized control.
Many such dzong still exist and are active centers of religion and district administration.
Located in the Eastern Himalayas, it is bordered by the Tibetan Autonomous Region of China in the north, the Sikkim state of India and the Chumbi Valley of Tibet in the west, the Arunachal Pradesh state of India in the east, and the states of Assam and West Bengal in the south.
Bhutan is geopolitically in South Asia and is the region's second least populous nation after the Maldives.